An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department. To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Question

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Answer 1

Question

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)

Notes:

1)

Journal entry for transaction a & b is combined in a.

Inventory used during the year is calculated as:

Inventory used=( opening inventory+purchase during the year −closing inventory)=($80,000+$72,000−$65,000)=$87,000

2)

Cash received from general fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($140,000+$392,000−$136,000)=$396,000

3)

Cash received from water and sewer fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$84,000−$0)=$84,000

4)

Cash received from special revenue fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$42,000−$16,000)=$26,000

5)

Cash paid for voucher during the year is calculated as:

Cash paid for voucher payable=( opening voucher payable+voucher payable during the year −closing voucher payable)=($41,000+$72,000−$19,000)=$94,000

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Answer 2

Question

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)

Notes:

1)

Journal entry for transaction a & b is combined in a.

Inventory used during the year is calculated as:

Inventory used=( opening inventory+purchase during the year −closing inventory)=($80,000+$72,000−$65,000)=$87,000

2)

Cash received from general fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($140,000+$392,000−$136,000)=$396,000

3)

Cash received from water and sewer fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$84,000−$0)=$84,000

4)

Cash received from special revenue fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$42,000−$16,000)=$26,000

5)

Cash paid for voucher during the year is calculated as:

Cash paid for voucher payable=( opening voucher payable+voucher payable during the year −closing voucher payable)=($41,000+$72,000−$19,000)=$94,000

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Answer 3

Question

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)

Notes:

1)

Journal entry for transaction a & b is combined in a.

Inventory used during the year is calculated as:

Inventory used=( opening inventory+purchase during the year −closing inventory)=($80,000+$72,000−$65,000)=$87,000

2)

Cash received from general fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($140,000+$392,000−$136,000)=$396,000

3)

Cash received from water and sewer fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$84,000−$0)=$84,000

4)

Cash received from special revenue fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$42,000−$16,000)=$26,000

5)

Cash paid for voucher during the year is calculated as:

Cash paid for voucher payable=( opening voucher payable+voucher payable during the year −closing voucher payable)=($41,000+$72,000−$19,000)=$94,000

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Answer 4

Question

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)

Notes:

1)

Journal entry for transaction a & b is combined in a.

Inventory used during the year is calculated as:

Inventory used=( opening inventory+purchase during the year −closing inventory)=($80,000+$72,000−$65,000)=$87,000

2)

Cash received from general fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($140,000+$392,000−$136,000)=$396,000

3)

Cash received from water and sewer fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$84,000−$0)=$84,000

4)

Cash received from special revenue fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$42,000−$16,000)=$26,000

5)

Cash paid for voucher during the year is calculated as:

Cash paid for voucher payable=( opening voucher payable+voucher payable during the year −closing voucher payable)=($41,000+$72,000−$19,000)=$94,000

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Answer 5

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)

Notes:

1)

Journal entry for transaction a & b is combined in a.

Inventory used during the year is calculated as:

Inventory used=( opening inventory+purchase during the year −closing inventory)=($80,000+$72,000−$65,000)=$87,000

2)

Cash received from general fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($140,000+$392,000−$136,000)=$396,000

3)

Cash received from water and sewer fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$84,000−$0)=$84,000

4)

Cash received from special revenue fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$42,000−$16,000)=$26,000

5)

Cash paid for voucher during the year is calculated as:

Cash paid for voucher payable=( opening voucher payable+voucher payable during the year −closing voucher payable)=($41,000+$72,000−$19,000)=$94,000

Answer 6

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)

Notes:

1)

Journal entry for transaction a & b is combined in a.

Inventory used during the year is calculated as:

Inventory used=( opening inventory+purchase during the year −closing inventory)=($80,000+$72,000−$65,000)=$87,000

2)

Cash received from general fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($140,000+$392,000−$136,000)=$396,000

3)

Cash received from water and sewer fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$84,000−$0)=$84,000

4)

Cash received from special revenue fund is calculated as:

Cash received=( opening receivable+receivable during the year −closing receivable)=($0+$42,000−$16,000)=$26,000

5)

Cash paid for voucher during the year is calculated as:

Cash paid for voucher payable=( opening voucher payable+voucher payable during the year −closing voucher payable)=($41,000+$72,000−$19,000)=$94,000

Answer 7

Chapter 16, Problem 16.12.1P

To determine

Introduction: An Internal Service Fund is a fund used in government accounting to track goods or service shifted between departments on a cost reimbursement basis. An example of an internal service fund is a maintenance department that provides equipment maintenance services to another department.

To prepare: Journal Entries for the period of July 1, 2018 to July 30, 2019.

Answer 8

Expert Solution & Answer

Explanation of Solution

Journal Entries for the period of July 1, 2018 to July 30, 2019 are as follows:

Journal entries

Serial number	Account title & explanation	Post ref.	Debit ($)	Credit ($)
a	Operating Expenses		87,000
	……Inventory of Material and Supplies			87,000
	(to record inventory adjustment) Note: 1
b	Operating Expenses		235,000
	……Cash			235,000
	(to record the payment of salaries and wages)
c	Operating Expenses		40,000
	……Cash			40,000
	(to record the payment of utility charge)
d	Operating Expenses		139,500
	…… Depreciation on Building			6,500
	…… Depreciation on equipment			133,000
	(to record depreciation on building & equipment)
e	Due from General Fund		392,000
	Due from Water and Sewer Fund		84,000
	Due from Special Revenue Fund		42,000
	……Operating revenue			518,000
	(to record the billing to other departments for service)
f	Cash		506,000
	…… Receive from General fund (note:2)			396,000
	…… Receive from Water and Sewer Fund (note:3)			84,000
	…… Receive from special revenue Fund (note:4)			26,000
	(to record the collections)
g	Voucher Payable		94,000
	……Cash (note:5)			94,000
	(to record voucher payment)